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Thursday, 28 April 2016

Close to a dozen private companies have come
forward to purchase Transferable Development Rights (TDR) from the Mumbai
Metropolitan Region Development Authority (MMRDA). Officials believe this is a
good sign for the organisation that will soon close tenders for the sale of one
of its biggest plots in Bandra Kurla Complex.

“On Tuesday, our bidding for the sale of
86,828.12sqmt of TDR was closed and on Wednesday, technical bids were opened,
with around a dozen bids being received,” a senior MMRDA official told dna.

If the entire lot of 86,828.12 sqmt of TDR is
sold out, the MMRDA will fetch a minimum of Rs315 crore as the reserve price
has been kept at Rs36,350/m.

Interestingly, a couple of weeks ago, the bidders
or developers had asked MMRDA to reduce the reserve price by around Rs4,000/mt,
which the MMRDA refused outright.

Last week, during the pre-bid meeting for the
sale of the plot at Bandra Kurla Complex, 12 developers had turned up to buy
the plot. Therefore, MMRDA officials are hopeful of getting a desirable price
for the 12,486sqmt of land, on which 50,000sqmt of commercial construction is
permitted. The reserve price for the entire plot is Rs1,479 crore.

The previous attempt to sell the TDR was made in
January, wherein the MMRDA had come out with 30,000sqmt of TDR for sale with an
expectation to earn a minimum of Rs154 crore. But it did not receive enough
response from the realty market to sell the entire 30,000sqmt.

Monday, 25 April 2016

Mumbaikars
awaiting the setting-up of the housing regulatory authority may have to wait
another year. One month after Parliament approved the Housing Regulatory Bill,
the Centre is yet to issue a gazette notification. The notification is issued
to inform citizens of the day when the Act comes into force. Unless it is done,
the Act cannot be implemented.

MUMBAI: Mumbaikars
awaiting the setting-up of the housing regulatory authority may have to wait
another year. One month after Parliament approved the Housing Regulatory Bill,
the Centre is yet to issue a gazette notification. The notification is issued to
inform citizens of the day when the Act comes into force. Unless it is done,
the Act cannot be implemented.

"The passing
of the Bill was taken up very rigorously but thereafter there has been no
movement to get it approved," said a source. "With the Centre passing
its own Act, the state Act has been repealed. Further rules need to be framed
to implement the Act which itself may take a year."

The state
government, said sources, was keen to appoint former bureaucrat Gautam
Chatterjee as the chief of the housing regulatory authority given his expertise
in these matters.Credit : http://realty.economictimes.indiatimes.com/

Saturday, 23 April 2016

Once again, civic
officials from B ward have taken cosmetic action against an illegal building
with the address 111, Zakaria Masjid Street, also called Hasan House. The
officials came, struck a few blows with hammers on the building, had lunch and
left, in an exact repeat of the ‘action’ that B ward officials had taken in the
first week of February. Of course, they must have taken a few photographs to be
placed on record while submitting the report to municipal commissioner Ajoy
Mehta.

While dna has been
writing about illegal structures coming up in the guise of old structures being
100% repaired, the residents of the area have lodged several more complaints
about work on other such illegal buildings being carried out across the ward.

dna had reported on
April 10 how Hasan House was ready and its developer is planning to give
possession of flats once the building gets a power connection. However, on
April 11, municipal commissioner Ajoy Mehta ordered additional municipal
commissioner Pallavi Darade to visit the illegal structure and submit an
action-taken report within a week.

Darade visited the
structure and officials were instructed to take action. But unfortunately, no
such action was taken. What happened instead was an orchestrated drama wherein
six-eight labourers went up to the 10th floor of the building at 12.45pm and
hammered on the walls for 30 minutes, even as officials from the building and
factory department waited in a vehicle a little distance away from the
building.

dna had first
reported on December 2, 2015, about five illegal structures constructed in the
area during the Diwali holidays. Local politicians, elected representatives and
developers work hand-in-glove and civic officials have turned a blind eye to
these structures.

Hasan House, an
11-storey load-bearing structure, was constructed in just one month. B ward
officials were reluctant to demolish the structure and delayed action, even
after it was scheduled on the list and the police had promised protection to
the officials.

Assistant
commissioner of B ward, Srinivas Kilaje, and an engineer from the building and
factory department, Vishal Mhaiskar, were two of the officials responsible for
taking action against the unscrupulous developers, but they dragged their feet
on the issue.

The officials merely
shot off a notice and never took any action. When dna did a follow-up story,
the officials assured that action would be taken, but never fulfilled this
promise. Almost three months later, in February, a symbolic demolition was
undertaken. This was an eyewash as the civic staff hammered on the walls for a
few minutes and stopped it after the developer’s men approached them.

Such buildings have
no completion certificates or occupation certificates, and yet have access to
civic amenities like water, sewerage and electricity.

Thursday, 21 April 2016

Simplex Infrastructure, JKumar Infraprojects and NCC have won
the contracts for different packages of the 16.5 km Andheri (East) to Dahisar
(East) Metro-7 corridor.

MUMBAI:
Simplex Infrastructure, JKumar Infraprojects and NCC have won the contracts for
different packages of the 16.5 km Andheri (East) to Dahisar (East) Metro-7
corridor.

"The
Executive Committee of the Authority, headed by Maharashtra Chief Secretary Swadheen
Kshatriya, accorded approval to appointment of the contractors to design and
construct an elevated viaduct and 16 stations in three packages," Mumbai
Metropolitan Region Development Authority (MMRDA) said in a statement today.

Simplex
Infrastructure has been awarded the contract to design and construct the first
package consisting of an elevated viaduct and five elevated stations including
Andheri (East), Shankarwadi, JVLR Junction, Mahanand and new Ashok Nagar.

The
agency has selected JKumar Infraprojects to design and construct the second
package consisting of an elevated viaduct and six elevated stations - Aarey,
Dindoshi, Pathan Wadi, Pushpa Park, Bandongri and Mahindra & Mahindra.

NCC has
bagged the contract to design and construct the third package consisting of an
elevated viaduct and five elevated stations including Magathane, Devipada,
National Park, Ovaripada and Dahisar(E).

Metropolitan
Commissioner UPS Madan had earlier said the preparatory work for the Rs 6,208
crore project will begin soon after the awarding of the contract, but the
actual civil work will commence after monsoon.

"These
winning bidders will design and construct the entire corridor and all 16
stations within a period of 30 months," MMRDA said.

Tuesday, 19 April 2016

MUMBAI: The city's
first police housing scheme will come up on private land, in a no-development
zone which has been converted into a residential zone for the purpose.

The government has
permitted the conversion as "most land in its vicinity has already been
developed". Urban development department (UDD) officials said the plot was
near the Infinity IT Park and civic reservoir in Malad, beyond which is the Sanjay
Gandhi National Park. The scheme is subject to the draft notification of the
eco-sensitive zone around the National Park issued in January.

The over 20-acre
(80,934 sq metre) plot is owned by construction firm D B Realty, and its
development is being allowed under Section 33(3) (b) of the Development Control
Regulations (DCR), which means a developer can sell 80% of the construction as
a sale component.

UDD officials said
the total floor space index (FSI) that will be allowed is 3.8, which means the
developer can construct 33.1 lakh sq ft. Of this, an FSI of 1 will be for
police housing and the remainder can be sold by the developer in the open
market, for which the incentive FSI is 0.8. The developer gets the base FSI of
1 and can also use the transfer of development rights, so the total FSI is 3.8.
Each police tenement is to be 40 sq m (430.55 sq ft).

In a notification
early this month, the UDD said the home department will be the authority for
the land development and will ensure that the police housing component is
strictly implemented at the earliest.

Under its housing
policy for the police, the state will set up 33,000 tenements on private land
and so introduced the new DCR. It directed that the developer must maintain a
10-metre buffer zone on land adjoining the forest. The developer will have to
develop an 18-metre wide road.

Monday, 18 April 2016

The Maharashtra government had earlier referred both the state and
central housing regulatory acts to its legal department for a decision on which
of these two should be followed in Maharashtra. The state government itself,
though, is of the opinion that the Maharashtra Housing (Regulation and
Development) Act, 2012 — which
is more pro-consumer and stringent on developers — should be followed over the central act.

"We
are confused after the Centre recently approved its own act, and hence we
decided to seek legal opinion before finalising things. We have been asked by
the Centre to repeal the state act so that the central act can be enforced. But
if we check both the central and state acts point by point, the state act is
more powerful and adds more teeth to the consumer's cause," said a senior
government official requesting anonymity.

He
added that the Maharashtra Housing Regulatory Act is ready for implementation
at a moment's notice. "We had also prepared the guidelines. If there is
clarity that the state act should be followed, we will intimate the central
housing department about our decision," the official said.

Ravindra
Waikar, Maharshtra's housing minister, said that there are many provisions in
the central act that have nothing to do with the state's housing industry.
"Mumbai is a dynamic city which has its own individual issues, and the
central act does not include various issues that pertain to Mumbai and
Maharashtra. Therefore, we are primarily of the opinion that our state act
should be retained. Many developers take buyers on a ride, so we have to
protect the interests of the buyers and consumers over that of the
developers," Waikar said.

Amin
Patel, a Congress MLA and member of the joint select committee that has
prepared the state bill, said that in the central act, there is no provision of
deemed conveyance, which involves transferring the title of a plot of land or
building. This has been made in the state act. "Conveyance is the major
issue in Mumbai. There are many cases of developers who have developed a
building, but are yet to make the conveyance even after 30 years of the
project's completion. Without the conveyance, the redevelopment of these
buildings will not take place. Therefore, we had included the provision of
deemed conveyance so that many residents could benefit and redevelop their
dilapidated buildings," Patel said.

Patel
further said that there are 45,000 housing societies in Maharashtra that are
still awaiting ownership of the title from the developers. "If we repeal
the state act, then the developers will take advantage and throw out the
existing residents from these buildings to make way for redevelopment. The
central government act seems to be soft towards developers," Patel added.
He said that chief minister Devendra Fadnavis should write to the Centre asking
for the state housing act to be implemented in Maharshtra.

Friday, 15 April 2016

Premium and luxury
real estate developer Kalpataru Limited has announced the launch of Project
Immensa, a premium residential development comprising over 1250 apartments,
situated within Kalpataru’s master planned township development on Kolshet Road
in Thane.

Project Immensa
incorporates several innovative, first in class design features which finely
balance exclusivity and privacy, with functionality and efficient use of space.

The floor layout
is such that there are minimum shared walls between any two apartments. Not
only does this enhance privacy, but also provides good cross ventilation,
increased sunlight, and enhanced sense of space. The placement of walls, doors
and windows in the apartment are done in a manner that enables efficient
furniture layout without space wastage, enabling maximum functionality.

Project Immensa
will offer residents class-leading leisure, sports and community living
facilities.

Project Immensa
features a 6000 square feet super fitness zone comprising gymnasium, yoga room
cum dance studio, spinning room and kick boxing arena. That apart, two indoor
badminton courts, a lap swimming pool for professional swimmers in addition to
a pleasure pool, kids pool, and open air jacuzzi, a multi-sport astroturfed
area, podium level community recreation areas, choice of party venues including
party zone on rooftop, party lawns and clubhouse with multiple party halls and
indoor games room, and a large landscaped garden, together spread across over
35,000 square feet offer residents ample fitness and recreation options to
choose from.

Celebrated
architect, Hans Brouwer of HB Design, Singapore, credited with projects such as
Commerzbank headquarters, Frankfurt, and Century Tower, Tokyo is the design
architect, while, Aedas Pte. Ltd., Singapore, which has been the architect to
iconic projects such as the new World Trade Centre, Jakarta, the 82 storey
Ocean Heights Residential Towers in Dubai is the masterplan architect.

Parag Munot,
Managing Director, Kalpataru Limited, said “We are excited to launch Project
Immensa, which will be a benchmark project in Thane. It reaffirms our
commitment to Thane and our firm belief in the city’s huge growth potential,
particularly of the Kolshet area, which will witness significant value
unlocking in the near future. We have over the past three decades developed
several landmark residential and commercial projects in Thane. Our projects
such as Tarangan, and Siddachal are landmarks that host vibrant communities,
and Kalpataru promoted Korum Mall is a thriving shopping hub and community
centre of choice for citizens from Thane and beyond”.

Wednesday, 13 April 2016

Does the prospect of a big
down payment make home ownership seem impossible? It’s not as out of reach as
you might think. Here are five tips to help you climb the down payment
mountain.

Every month you pay the rent,
you’re probably thinking, “I wish this money was going into my future.” For a
lot of would-be first-time home buyers, it’s the down payment which makes home
ownership seem impossible. Climbing the “down payment mountain” isn’t
impossible. Like any major challenge, it’s all a matter of breaking your big,
hairy, audacious goal down into practical steps.

Here are some tips to conquer
saving for a down payment:

Find out where
your money goes. You can’t start saving if you
don’t know where you’re spending. For a month or two, track each expenditure,
no matter how small. Get an objective picture of where you’re spending the
cash.

Get specific about
how much you need to save.Even if you’re not 100% sure
what your down payment needs to be yet, it’s good to start doing a little math
to figure out how much you need to save. Pick a dollar amount and a timeline to
hit that dollar amount. For example, a `20,00000 down payment in two years
comes to `83,000 per month. Sound unrealistic? Either scale down your home
desires to something smaller or scale up your timeline. If you can wait three
years, that monthly savings goal drops to ` 55,000/month.

Determine the big
moves you can make. If you’re in a three bedroom
apartment and can stomach the idea of scaling down to a one bedroom, how much
would you save in rent? What about going from two cars down to one? If you can
make it work, these sacrifices will have a huge impact on your savings goals.

Setup a separate
savings account. Don’t let your dream home
money mingle with your regular checking or savings account. Establish a
high-yield savings account with a credit union or money market account to
protect and build your stash. It’s important to have a separate account with a
“hands off” attitude.

Mind the risky
investment schemes. Once you have a little
momentum, you might be tempted to take some of that cash and invest it in order
to make it grow faster. Be very prudent about this, as investing in stocks,
startups, or high-yield funds can easily decimate your savings. Be
conservative.

Of course, it’s important to
know how much home you want to buy when you’re saving up for your down payment.
I’m happy to give you an idea what homes are selling for in your area. Feel
free to get in touch any time for booking your Dream Home!

Monday, 11 April 2016

Think you’ve found the perfect
home? Think again. There are three little details which can turn an ideal house
into the world’s most annoying location.

Before you make your offer,
take into account these three small, but surprisingly important details:

#1: “Let me call
you back on my landline.”

Does your future dream home
have cell reception? Check your signal when you’re on the property and see if
it has dead spots, poor/limited data connections, or flat out “NO SERVICE”
messages. This is especially important if you telecommute or had planned on
skipping a landline entirely. While you can try and live on VoIP connections,
WiFi, and other options, the hassle of a hole in cell coverage can wear on you.

#2: “Wow, the
commute is longer than I thought.”

It’s a sunny Saturday
afternoon, and for kicks you decide to see how long the drive is from your
potential dream home to your office. Doesn’t seem too bad, does it? Now try it
during rush hour on a Monday (in bad weather if you can swing it). You might be
surprised how school zones, backed-up interstate ramps, new construction, and
peak transit schedules extend that commute. This goes for urban commutes too,
so even if you don’t drive to work you’ll want to evaluate the commute in
real-world conditions.

#3: “What do you mean
we’re outside your delivery zone?”

The neighborhood was
gentrifying. The home price was within your range. Now you find out that
there’s no such thing as food delivery to your new address! Don’t assume that
just because you’ve seen pizza delivery cars whipping through the ‘hood means
they stop there. Restaurant delivery areas are often drawn like congressional
districts, so if you can, check out what the local food delivery options are
like ahead of time. Look up a few places, call them, and verify they deliver to
your address. (Asking the average delivery time is a good idea, too.)

Markets
can be super competitive, but remember that you’re planning on living in this
new house for a considerable amount of time. (Most people would tell you at
least 5 - 7 years.) Perhaps your priorities don’t include these three details,
but they might to other buyers when you’re ready to sell. Time changes things,
but ask yourself: Do you want to put up with the annoyances for two years? Even
one?

Saturday, 9 April 2016

Preparing your home to sell
means presenting a home which is attractive to buyers. If you’re going to be
living in the home while it’s on the market, and you’re choosing not to stage
it, you absolutely must go through a decluttering process. It can feel overwhelming
at first, but I assure you the process can be broken down into manageable steps
which will help your home sell potentially faster and for a better price.

1. Take photos of
what you’re up against. You might think
things look pretty good until you see your home with the unflinching eye of the
camera. Photograph every room from multiple angles and you’ll begin to see what
buyers will see. Don’t forget to snap the closets, laundry rooms, and garage.

2. Plan a
room-by-room attack. This doesn’t have to be done
in a day, a weekend, or even a week. Depending on your timeline, tackle as much
or as little as you can reasonably manage before burning out. If you try to do
too much at one time, you’re likely to start making unfortunate compromises
about what stays and what goes.

3. Use a
checklist. When you assess a room, list what needs to be done
and then the orderin which it makes the most sense to do it.
Visualizing the process will prevent you from wasting time. For example: You
may find that certain pieces of furniture can go, and if you haven’t planned
for help moving them out, you can get stalled.

4. Be ruthless. You
have clothes you haven’t worn in years, piles in the garage you’ve moved
around, and shelves of unread or dispensable books. Start thinking of those
“perfectly good” somethings you’ve been hanging onto as anchors dragging down
your home’s appeal.­­

5. Stay motivated. Tell
yourself: Less is more. Remind yourself: Every box that goes to Goodwill is a
box you won’t have to lift, relocate, and unpack on moving day. This is an
opportunity to refresh your life!

6. Pile it up. Sort
things into “give away,” “throw away,” and “sell.” Some things can go to
friends, others can go to charity. Keep in mind the real market value of items
if you plan on selling them online (they’re probably worth less than you
think). Some you can unload curbside, other items may be destined for
freecycle.org, Craigslist.org, or a local junk pick-up service.

If you need someone who can
see your home with a buyer’s eyes, don’t hesitate to invite me over. I’d be
happy to provide you with a fresh perspective on your decluttering mission. Get
in touch today!

Wednesday, 6 April 2016

Many of my clients (especially Baby Boomers who are
downsizing or relocating) ask me if they should pay the full amount for their
next house or finance it with a new loan. While the idea of owning a home
free-and-clear is certainly appealing, I always present them with a series of
questions to help them clarify the big picture.

Perhaps you or someone you know may benefit from
these as well:

How much will you be left with after a
full amount purchase? Maintaining a safety net of three to six months’ worth of living
expenses can be a real comfort after you’ve done well on the sale of your home.
How comfortable will you be if a full amount purchase brings you near zero?

Are you retiring soon? This goes to two
issues: First, whether or not the absence of a loan will significantly improve
your monthly position, keeping in mind you’ll still need to make insurance, tax
payments, and maintenance. Second, if you’re thinking about applying for a loan.
It can be a challenge to qualify for a loan after you’ve retired, so if you
think you’ll need a loan, it may be better to get it in advance.

What’s your tax and income situation
look like? For some people, the loan interest deduction on income taxes has a
significant impact on their annual tax bill and overall cash flow picture. It’s
always a good idea to consult with a financial professional before you “write
off” the write off.

Might you need to help someone out in
the near future? Sometimes having the liquidity to help family
members or close friends in need is important. Are you planning to help someone else with
a down payment on a home? Is it likely you’ll have to help a close friend or
relative through a tough time? Having cash on hand can be a comfort.

How important is “free and clear” to
your mind? For some, there’s nothing that compares to the idea of owning a home
free and clear. Sometimes the feeling of “no debt” simply can’t be overpowered
by tax or liquidity benefits. It’s important to be honest with yourself, and if
you’ve always dreamed of dodging a house payment, it could be the right emotional
move.

For all of these reasons and more you’ll want to
choose wisely before you go in for a full amount purchase of your next home.
Naturally, if you need any help selling your current home or looking for the
next one, I’d be happy to help:

Saturday, 2 April 2016

Though the
full implementation of Real Estate Regulation & Development Act 2016, may
still be months away, yet RERA that protects and empowers homebuyers,
making the entire home buying process fair and transparent, aided by other key
reforms, has already turned homebuyers’ sentiment and market perception
positive. Here are 10 factors that will give the much needed boost to
residential real estate.

1 More disposable income

Over
the past two years, one major reason for homebuyers taking a back seat, has
been the worsening job market, drop in disposable income and uncertainty over
paying capacity in view of high EMIs. But there are promising times
ahead, especially with the hiring activity growing by 10 per cent last year and
there were salary hikes of 10-12 per cent. According to MyHiringClub.com, this
year’s outlook promises pay hikes in the range of 10-30 percent. The Seventh
Pay Commission announced by the Centre is set to trigger a substantial hike in
salaries, thereby pushing up disposable income. The salary hike of government
employees will have a positive rub off on the pay packet of private sector
employees. Although, the IT limit has not been hiked in this year’s budget, yet
hike in HRA limit of standard deduction of Rs 24,000 p.a for not availing HRA,
will also push up disposable income.

2 Softening of interest
rates

High
interest rates have also been proving to be a dampner for housing for quite
some time. But from this year onwards, things are likely to change for better,
with interest rates set to drop to single digit level. Lending rate cuts hold
the key to the recovery of residential real estate. After the Finance Ministry
cut the FY '17 fiscal deficit target by 40 bps to 3.5 per cent of GDP and with
economy in deflationary mode, RBI may well announce 25- 50 bps rate cut in its
April policy review. All this is expected to provide relief to prospective
homebuyers by way of lower EMIs. Some developers have already come up with
schemes like no EMi till possession, low EMIs for first few years and
zero per cent interest on loan to lessen the EMI burden of home loan
seekers.

3 Three cheers for consumer
protection

Lack
of consumer protection and large-scale delivery defaults due to slowdown had
badly hit the buyer sentiment. But the passage of Real Estate Regulation
& Development Bill 2016, aimed at empowering and protecting the real estate
consumers through measures like escrow account for real estate projects and
early resolution of disputes, while at the same time reining in the errant
developers with stiff penalties, will restore the confidence of home buyers,
thereby triggering home sales.

4 More liquidity for
developers

The
ongoing real estate slowdown, especially in the residential sector, got
precipitated in the past with the severe liquidity crisis faced by the
developers. However, with speedy reforms undertaken by the government,
floundering funding environment is looking up. Due to relaxation in FDI norms
over the past two years, the entire real estate stock is now accessible to
foreign investors.This is already having a positive impact on the liquidity
front, with substantial increase in FDI in real estate. Even the PE
investment touched Rs 14,974 crore last year, clocking a record growth of 33
per cent.

Industry
players expect PE players notching up a bumper 2016, with more and larger
deals. On the domestic front too, things are looking up with Kotak Realty Fund
raising $ 250 million, Indiabulls Real Estate Fund raising Rs 500 crore and JLL
India arm set to raise Rs 120 crore by April. The liquidity environment will
further look up with RERA set to open the doors for cheaper bank funding. The
abolition of Dividend Distribution Tax on REITs in 2016 budget will provide
access to new source of funding.

5 Focus on execution to increase

The
failure of real estate developers to execute projects on time, jeopardising the
investment of homebuyers, was a prime reason for the slump in real estate
market. But going forward, the increased capital inflow through PE and NBFCs
will strengthen the execution capability of developers. Piramal has offered Rs
15,000 crore of open credit line to sekect builders. Moreover, large firms are
entering the scene as development managers for stressed developers in return
for a share of revenue and profits. RERA will further improve execution as it
envisages strict deadlines for completion of projects and higher penalty for
defaulters. Moreover, with RERA set to be implemented in states in the next few
months, builders will rush to complete pending projects to avoid stringent
provisions of the RERA Bill.

6 Deals, discounts and freebies

Because
of the weak home sales due to recession, developers desperate to push up sales,
have been offering attractive deals to prospective home buyers. These deals are
in the form of discounts and freebies like cars, air conditioners, modular
kitchens, besides waiving off registration, club and parking charges. They have
also been offering newly launched residential properties at reduced
price. But all this could not boost the confidence of investors and home buyers
to invest. But in the present scenario, when these deals come with the
financial protection through RERA, the trust deficit of buyers, will get
bridged and they will get encouraged to invest in residential real estate.

7 Increasing affordability

The
ongoing reforms coupled with budgetary policy initiatives like 100 per cent
service tax exemption for affordable homes, additional yearly rebate of Rs
50,000 on housing loan interest for first-time homebuyers in the affordable
segment have significantly contributed towards strengthening the affordability
of home buyers. And going forward, the increased disposable income through
salary hikes, together with lower interest rates, will strengthen the
affordability for homebuyers.

8 Policy push to housing sector

In
line with its aim of providing ‘Housing for All by 2022’, this reform- oriented
government through its policy prescription, is giving a forward thrust to the
housing sector. Already housing for weaker sections and slum redevelopment has
been brought under CSR to give impetus to the supply of affordable housing.
Promotion of affordable housing for EWS through credit-linked subsidy and
promotion of housing for urban poor is also being given a push. The government
has cleared a Rs 82,000 crore plan for rural housing under which three
crore homes are to be built by 2022. In order to boost rental demand for
affordable housing, the budget has hiked the limit of deduction for rent paid
under section 80GG of IT Act.

9 Fear of price rise

Residential
property prices have stayed muted over the past 6-7 quarters because of weak
sales and large unsold inventory. According to Credai prices have come down by
15-20 per cent during this slowdown period and there is no scope for further
reduction in prices. But now this depressing scenario is set to change
with RERA providing consumer protection and boosting homebuyers’ sentiment, in
turn providing much needed momentum to home sales. And as sales pick up and
inventories go down, prices are bound to firm up. According to a latest Knight
Frank report, ‘Residential Investment Advisory Report 2016’, about a dozen
investment locations across six top cities of Mumbai Metropolitan Region, NCR,
Bengaluru, Chennai, Hyderabad and Pune, will witness price appreciation over
the next 5 years. RBI says that price increase is already happening in 10 major
cities.

10 An attractive asset class

Due
to prolonged slowdown in the sector resulting in depressed prices, the interest
of end users and investors had dwindled during the past over two years. It got
partly shifted to financial assets. But now a number of recent
developments have once again put real estate back on the radar of end-users and
investors. The volatile stock market and lowering of interest rates has taken
the sheen off the attractiveness of stocks, mutual funds or FDs. The revival of
real estate market with commercial realty and now followed by residential
realty ( particularly after RERA), has increased the attractiveness of the
asset class, especially as the prices are on an upward swing. According to
Stuart Roberts, CEO, Asia Pacific, Cushman & Wakefield, with a number of
reform measures Indian real estate is on the radar of international investors.